Disabled workshop firm had £3m debts

A WORKSHOP for the blind and disabled which went into liquidation two months ago crashed with debts of more than £3 million, it was revealed yesterday.

A total of 51 disabled and able-bodied workers lost their jobs when the Glencraft factory in Aberdeen went into liquidation in November.

Creditors were told at a meeting in Aberdeen yesterday by liquidators Iain Fraser and Tom MacLennan of RSM Tenon that Glencraft's debt was just over 3m.

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The company's debts include a share of Aberdeen City Council's pension fund deficit and liabilities arising from the insolvency, including redundancy and notice pay, and money owed to the Department of Work and Pensions.

But the liquidators also revealed that talks to reopen the factory – under a business plan put forward by Aberdeen-based global energy company PSN – were progressing well.

Bob Keiller, chief executive of PSN, and Duncan Skinner, the firm's chief financial officer, hope to reopen the factory by March and offer jobs to all the workers who were made redundant. Their plan is to more than double the turnover of the factory within a year to 2m by boosting production of beds and mattresses.

Mr Fraser said: "We are providing as much help as possible to the company and government agencies as they develop this innovative rescue plan.

"Saving Glencraft is a priority, and we will move very quickly to ensure a swift sale whenever the interested parties are ready."

He added: "We have a responsibility to maximise any return to creditors, hence we are working hard to realise value from the assets. We are focused on helping the interested parties finalise plans to save the charity and we remain hopeful of a successful outcome."

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